Weaver v. Hutson, Ii, No. 71-1645

CourtUnited States Supreme Court
Writing for the CourtWHITE
Citation93 S.Ct. 288,34 L.Ed.2d 227,409 U.S. 957
Docket NumberNo. 71-1645
Decision Date24 October 1972
PartiesCoy L. WEAVER et ux. v. Richard M. HUTSON, II, Trustee of Landmark Inns of Durham, Inc

409 U.S. 957
93 S.Ct. 288
34 L.Ed.2d 227
Coy L. WEAVER et ux.

v.

Richard M. HUTSON, II, Trustee of Landmark Inns of Durham, Inc.

No. 71-1645.

Supreme Court of the United States

October 24, 1972

On petition for writ of certiorari to the United States Court of Appeals for the Fourth Circuit.

The petition for a writ of certiorari is denied.

Mr. Justice WHITE, dissenting.

Section 70(b) of the Bankruptcy Act, 11 U.S.C. § 110(b), provides:

'[A]n express covenant that an assignment by operation of law or the bankruptcy of a specified party thereto or of either party shall terminate the lease or give the other party an election to terminate the same is enforceable.'

In Finn v. Meighan, 325 U.S. 300, 65 S.Ct. 1147, 89 L.Ed. 1624 (1945), the Court held § 70(b) fully applicable in ch. X reorganization proceedings despite arguments that enforcement of forfeiture clauses could deprive the debtor of property vital to the continuance of the business and so defeat the very purpose of the reorganization proceedings.* The Court said:

'There is some suggestion, however, that that provision is applicable only in ordinary bankruptcy proceedings and not to reorganizations under Ch. X. It is pointed out that frequently the value of enterprises is greatly enhanced by leases on strategic

Page 958

premises and that if forfeiture clauses were allowed to be enforced, reorganization plans might be seriously impaired. But Congress has made the forfeiture provision of § 70 applicable to reorganization proceedings under Ch. X. . . . Thus we must read § 70(b) as providing that an express covenant is enforceable which allows the lessor to terminate the lease if a petition to reorganize the lessee under Ch. X is approved. Cf. In re Walker [2 Cir.], 93 F.2d 281. That being the policy adopted by Congress, our duty is to enforce it.' 325 U.S., at 302-303, 65 S.Ct. 1147.

In the case before use the Court of Appeals for the Fourth Circuit refused to apply § 70(b) in a reorganization proceeding and to enforce a termination provision in a lease because to do so, in its opinion, would emasculate the reorganization plan. The Court of Appeals relief on Smith v. Hoboken R. Co., 328 U.S. 123, 66 S.Ct. 947, 90 L.Ed. 1123 (1946), where this Court held that § 70(b) did not require recognition of a forfeiture provision in the context of a railroad reorganization under § 77 because the forfeiture would deprive the Interstate Commerce Commission of its statutory function ....

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22 practice notes
  • In re Delta Motor Hotel of Syracuse, Inc., Bankruptcy No. BK-78-1683.
    • United States
    • United States Bankruptcy Courts. Second Circuit. U.S. Bankruptcy Court — Northern District of New York
    • 6 April 1981
    ...courts as courts of equity. See, In re Fleetwood Motel Corporation, supra; Weaver v. Hutson, 459 F.2d 741 (4th Cir. 1972), cert. denied, 409 U.S. 957, 93 S.Ct. 288, 34 L.Ed.2d 227 (1973) (White, J., dissenting); Queens Boulevard Wine & Liquor v. Blum, supra; In re Fontainebleu Hotel, 515 F.......
  • Huntington Ltd., In re, No. 79-3088
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • 24 August 1981
    ...Queens Boulevard Wine & Liquor Corp. v. Blum, 503 F.2d 202 (2nd Cir. 1974); Weaver v. Hutson, 459 F.2d 741 (4th Cir. 1972), cert. denied, 409 U.S. 957, 93 S.Ct. 288, 34 L.Ed.2d 227 (1973); In re Fleetwood Motel Corp., 335 F.2d 857 (3rd Cir. In Smith, the Supreme Court determined that the qu......
  • Butz v. Glover Livestock Commission Company, Inc 8212 1545, No. 71
    • United States
    • United States Supreme Court
    • 28 March 1973
    ...whether, in doing so, the Court of Appeals exceeded the scope of proper judicial review of administrative sanctions. 409 U.S. 947, 93 S.Ct. 288, 34 L.Ed.2d 217 (1972). We conclude that the setting aside of the suspension was an impermissible judicial intrusion into the administrative domain......
  • Matter of Curio Shoppes, Inc., Bankruptcy No. 2-85-00171.
    • United States
    • United States Bankruptcy Courts. Second Circuit. U.S. Bankruptcy Court — District of Connecticut
    • 8 November 1985
    ...Ass'n, 185 F.2d 283, 285 (8th Cir.1950) (filing of bankruptcy petition). 7 Weaver v. Hutson, 459 F.2d 741 (4th Cir.1972), cert. den. 409 U.S. 957, 93 S.Ct. 288, 34 L.Ed.2d 227 (1973); In re Fleetwood Motel Corp., 335 F.2d 857 (3d 8 The debtor's further argument concerning the constitutional......
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22 cases
  • In re Delta Motor Hotel of Syracuse, Inc., Bankruptcy No. BK-78-1683.
    • United States
    • United States Bankruptcy Courts. Second Circuit. U.S. Bankruptcy Court — Northern District of New York
    • 6 April 1981
    ...courts as courts of equity. See, In re Fleetwood Motel Corporation, supra; Weaver v. Hutson, 459 F.2d 741 (4th Cir. 1972), cert. denied, 409 U.S. 957, 93 S.Ct. 288, 34 L.Ed.2d 227 (1973) (White, J., dissenting); Queens Boulevard Wine & Liquor v. Blum, supra; In re Fontainebleu Hotel, 515 F.......
  • Huntington Ltd., In re, No. 79-3088
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • 24 August 1981
    ...Queens Boulevard Wine & Liquor Corp. v. Blum, 503 F.2d 202 (2nd Cir. 1974); Weaver v. Hutson, 459 F.2d 741 (4th Cir. 1972), cert. denied, 409 U.S. 957, 93 S.Ct. 288, 34 L.Ed.2d 227 (1973); In re Fleetwood Motel Corp., 335 F.2d 857 (3rd Cir. In Smith, the Supreme Court determined that the qu......
  • Butz v. Glover Livestock Commission Company, Inc 8212 1545, No. 71
    • United States
    • United States Supreme Court
    • 28 March 1973
    ...whether, in doing so, the Court of Appeals exceeded the scope of proper judicial review of administrative sanctions. 409 U.S. 947, 93 S.Ct. 288, 34 L.Ed.2d 217 (1972). We conclude that the setting aside of the suspension was an impermissible judicial intrusion into the administrative domain......
  • Matter of Curio Shoppes, Inc., Bankruptcy No. 2-85-00171.
    • United States
    • United States Bankruptcy Courts. Second Circuit. U.S. Bankruptcy Court — District of Connecticut
    • 8 November 1985
    ...Ass'n, 185 F.2d 283, 285 (8th Cir.1950) (filing of bankruptcy petition). 7 Weaver v. Hutson, 459 F.2d 741 (4th Cir.1972), cert. den. 409 U.S. 957, 93 S.Ct. 288, 34 L.Ed.2d 227 (1973); In re Fleetwood Motel Corp., 335 F.2d 857 (3d 8 The debtor's further argument concerning the constitutional......
  • Request a trial to view additional results

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